STOCK MARKET WATCH -- Tuesday, 14 August 2012

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18. FRENCH ECONOMY SEES ZERO GROWTH IN Q2

http://hosted.ap.org/dynamic/stories/E/EU_FRANCE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-08-14-04-54-51

PARIS (AP) -- France's economy was stagnant in the second quarter, the government said Tuesday, amid worries that Europe's No. 2 economy is hovering on the edge of a new recession.

The preliminary estimates released Tuesday by the state statistics agency Insee mark the third straight quarter without growth.

The figures were in line with Insee's earlier forecast for no growth in domestic product for the quarter. But they were better than estimates by France's central bank, which had forecast a 0.1 percent contraction in the second quarter and a continued drop in the third quarter.

Finance Minister Pierre Moscovici expressed hope for growth in the second half of the year despite the lackluster first half. Speaking on Europe-1 radio, he acknowledged that the economy is "too weak" but stressed that France is staying stable even as "most of its partners" are in recession, including Spain, Italy and Britain.